NEW DELHI: The Nifty50 saw choppy trading on Thursday before it ended the day with a 'Bearish Belt Hold' formation on the daily chart. This was the third session when the index formed a higher high- higher low pattern.
During the session, the index made several attempts to get back to the positive territory, suggesting that the bulls were in no mood to give in. During the session, the index faced resistance at around 10,800, which would now act as immediate hurdle.
On the upside, the 10,800-830 levels could act as a key hurdle in the near-term, said Nagaraj Shetti Technical Research Analyst at HDFC Securities.
At close, the index stood at 10,749, down 20.15 points, or 0.19 per cent. The opening level proved to be the intraday high and, hence, there was no upper wick on the candlestick pattern.
Chandan Taparia of Motilal Oswal Securities noted that even though the 50-pack index failed to hold above its key resistance at 10,777, it consolidated around the intraday support at 10,740 level.
"The movement with a narrower price band suggests the index was preparing for a bigger upswing on either direction. Bank Nifty held its ground firmly and appeared to be heading higher. It is quite possible that the Nifty50 would eventually break out of its downsloping trendline, whose value is placed around the 10,800 level," said Mazhar Mohammad, Chief Strategist of Chartviewindia.in.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan, believes the medium-term falling trend line and upper end of a possible distribution triangle at 10,800-10,860 would be a key hurdle to watch out for. The breach of the support zone in the 10,604-10,557 range may lead to a larger decline, Ratnaparkhi said.